Pro forma income statements forecast the assets a firm will need in the next accounting period.

Question

Quizplus · Accepted Answer

Pro forma income statements focus on forecasting the firm's projected revenues and expenses, and do not directly relate to the assets needed in the next accounting period. However, pro forma financial statements, which include both income statement and balance sheet projections, can provide insight into the assets a firm may require in the future.

Pro Forma Income Statements Forecast the Assets a Firm Will